Tesla (TSLA) shares plummeted 5.44% in intraday trading on Tuesday, as investors reacted to disappointing first-quarter delivery numbers and growing concerns over the impact of new tariffs. The electric vehicle maker reported a 13% drop in quarterly vehicle deliveries, marking the steepest decline in almost three years and falling well below Wall Street expectations.
Adding to the pressure, longtime Tesla bull Dan Ives at Wedbush slashed his price target on the stock by 43% to $315, citing a "demand reset" in China and rising brand risk tied to CEO Elon Musk's political entanglements. Musk's involvement in the Trump administration and his role as head of the Department of Government Efficiency (DOGE) have sparked protests and boycotts against Tesla, creating what Ives called a "brand crisis tornado."
Further complicating matters, Musk has publicly clashed with President Trump's top trade adviser, Peter Navarro, over the administration's aggressive tariff policies. Despite Musk's appeals for zero tariffs between the U.S. and Europe, Trump has continued to escalate trade barriers, threatening to impose additional 50% tariffs on China. This ongoing dispute has raised concerns about potential retaliatory measures and their impact on Tesla's global operations, particularly in the crucial Chinese market.
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